Open-end fund is one of the basic forms of fund operation in the world. Fund management companies can sell new fund shares to investors at any time, and also need to buy back their fund shares at any time at the request of investors.
At present, the open-end fund has become the mainstream of the international fund market. More than 90% of the fund markets in the United States, Britain, Hongkong and Taiwan Province Province are open-end funds. Compared with closed-end funds, open-end funds have great advantages in incentive and restraint mechanism, liquidity, transparency and investment convenience:
1, with strong market selectivity. If the performance of the fund is excellent, the capital flow of investors buying the fund will lead to the increase of the fund assets. However, if the fund is poorly managed, investors will withdraw funds by redeeming the fund, resulting in a decrease in fund assets. Because the overall operating cost of large-scale funds is not higher than that of small-scale funds, large-scale funds have better performance, more people are willing to buy, and the scale is larger. This mechanism of survival of the fittest has formed a direct incentive and constraint for fund managers, which fully embodies a good market choice;
2. Good liquidity. Fund managers must maintain sufficient liquidity of fund assets to cope with possible redemption, and will not concentrate on holding a large number of assets that are difficult to realize, thus reducing the liquidity risk of the fund;
3. High transparency. Under the necessary information disclosure, open-end funds generally publish their net assets every day, which accurately reflects the ability of fund managers to operate and control funds in the market at any time, and is particularly attractive to small investors with insufficient ability, funds and experience;
4. Convenient investment. It is very convenient for investors to purchase and redeem funds at all sales places at any time. A good incentive and restraint mechanism urges fund managers to pay more attention to integrity and reputation, emphasizing long-term, stable and excellent investment strategies and excellent customer service. As a kind of financial innovation, the introduction of open-end fund can better mobilize investors' investment enthusiasm, and the sales channels include bank outlets, which can attract some new savings funds into the securities market, improve the investor structure and play a role in stabilizing and developing the market.
Open-end funds and closed-end funds are isomorphic, forming two basic modes of fund operation.
Open-end fund refers to an investment fund whose scale is not fixed, but which can issue new shares or be redeemed by investors at any time according to market supply and demand. Closed-end fund is relative to open-end fund, which refers to the investment fund whose fund size has been determined before issuance and remains unchanged within the specified period after issuance.
Open-end funds are not listed and traded, and are generally purchased and redeemed by banks. The scale of the fund is not fixed, and the fund unit can sell it to investors at any time or buy it back at the request of investors. Closed-end funds have a fixed duration, and the fund size is fixed during the duration. Generally listed on the stock exchange, investors buy and sell fund shares through the secondary market. Closed-end funds are not allowed to accept new shares and IPOs for a period of time before the new round of opening. When opening up, you can decide how much to bid or reinvest, and newcomers can also buy shares at this time. Generally, the opening time is 1 week and the closing time is 1 year.
Fund is an indirect way of securities investment. By issuing fund shares, fund management companies concentrate investors' funds, which are managed by fund custodians (that is, qualified banks) and managed and used by fund managers to invest in financial instruments such as stocks and bonds, and then * * * bear the investment risks and share the benefits.
According to different standards, securities investment funds can be divided into different types-according to whether the fund share can be increased or redeemed, they can be divided into open-end funds and closed-end funds.
Open-end funds are not listed and traded, but are generally purchased and redeemed by banks, and the fund scale is not fixed; Closed-end funds have a fixed duration, and the fund size is fixed during the duration. Generally listed on the stock exchange, investors buy and sell fund shares through the secondary market.
Open-end fund refers to an investment fund whose scale is not fixed, but which can issue new shares or be redeemed by investors at any time according to market supply and demand. Closed-end fund is relative to open-end fund, which refers to the investment fund whose fund size has been determined before issuance and remains unchanged within the specified period after issuance.
The difference between open-end fund and closed-end fund
First, the main differences are as follows:
(1) The variability of fund size is different. Closed-end funds have a definite duration (in China: not less than 5 years), during which the issued fund shares cannot be redeemed. Although this kind of fund can be raised under special circumstances, it must meet strict legal conditions. So in general, the size of the fund is fixed. However, the fund shares issued by open-end funds can be redeemed, and investors can also buy fund shares at will during the duration of the fund, which leads to the constant change of the total amount of funds every day. In other words, it is always in an "open" state. This is the fundamental difference between closed-end funds and open-end funds.
(2) There are different ways to buy and sell fund shares. When a closed-end fund is initiated, investors can subscribe to the fund management company or sales organization; When closed-end funds are listed and traded, investors can entrust brokers to buy and sell at market prices on the stock exchange. When investors invest in open-end funds, they can purchase or redeem them from fund management companies or sales organizations at any time.
(3) The buying and selling prices of fund shares are formed in different ways. Because closed-end funds are listed on the exchange, their buying and selling prices are greatly influenced by the relationship between market supply and demand. When the market supply is less than the demand, the buying and selling price of the fund unit may be higher than the net asset value of each fund unit, and then the fund assets owned by investors will increase; When the market supply exceeds demand, the fund price may be lower than the net asset value of each fund unit. The transaction price of open-end funds is calculated based on the net asset value of the fund unit, which can directly reflect the level of the net asset value of the fund unit. In terms of fund transaction costs, investors have to pay a certain percentage of securities transaction tax and handling fee in addition to the price when buying and selling closed-end funds, just like buying and selling listed stocks; The related expenses (such as initial subscription fee, redemption fee, etc.) that investors of open-end funds need to pay are included in the fund price. Generally speaking, the transaction cost of closed-end funds is higher than that of open-end funds.
(4) The investment strategies of funds are different. Since closed-end funds cannot be redeemed at any time, all the funds raised can be used for investment, so that fund management companies can formulate long-term investment strategies and achieve long-term business performance. On the other hand, open-end funds must keep some cash so that investors can redeem it at any time, but not all of it is used for long-term investment. Generally invest in assets with strong liquidity.
Two. In short, the main differences are as follows:
(1) Is the fund fixed? Closed-end funds have a fixed duration, and the fund size is fixed during the duration. Open-end funds have no fixed duration, and their scale can change at any time due to investors' purchase and redemption;
(2) Not listed. Closed-end funds are listed and traded on the stock exchange, while open-end funds are sold and redeemed in the business premises of sales organizations, and are not listed and traded;
(3) Price decision. The subscription and redemption prices of open-end funds are calculated by the daily net asset value of the fund unit plus or minus a certain handling fee, which can clearly reflect its investment value, while the transaction price of closed-end funds is mainly affected by the supply and demand relationship between the market and specific fund units;
(4) Management requirements. Open-end funds are faced with redemption pressure at any time, so they should pay more attention to risk management such as liquidity and require fund managers to have a high level of investment management. The development process of world investment funds basically follows the development law from closed to open.
Who is suitable for investing in open-end funds?
Generally speaking, open-end funds are suitable for four types of investors:
(1) Investors who take securities investment as a sideline and have no time to take care of it.
Most participants in the securities market have their own main jobs, and the opening time of securities trading is also the busiest time for everyone to work. Buying a fund can be managed by a professional fund company and you can enjoy the benefits yourself.
(2) Investors who are interested in investing in securities but lack securities knowledge.
Due to the lack of securities knowledge, most investors can't conduct in-depth and detailed research on the securities market and listed companies, which makes the investment blind. It is better to entrust a professional fund management company to operate.
(3) Securities investors with low risk tolerance.
At present, most investors who are active in the securities market are small and medium investors. If their funds are concentrated on buying one or two stocks, the risk will be too concentrated. Investment is too scattered, involving too much energy, and the investment cost rises, which is not worth the loss. The fund gathers small funds into huge funds, which can be used for portfolio investment calmly, which not only disperses risks, but also facilitates management.
(4) investors who expect long-term stable income and do not pursue wealth.
Different funds have different investment styles, but they all advocate long-term rational investment. To pursue excess profits, you have to bear double risks. In this securities market, funds represent the mainstream of institutional investors, and the return on investment is not the highest, but it will be relatively stable for a long time.
Calculation of subscription/subscription and redemption price of open-end funds
The subscription and redemption prices of open-end funds are calculated according to the net asset value (NAV) of unit funds. The net asset value of a fund unit, that is, the net asset value of a fund represented by each fund unit, is calculated as follows:
Net asset value of fund units = (total assets-total liabilities)/total number of fund units
Subscription example:
An investor has 6,543,800 yuan to subscribe for an open-end fund. Assuming that the subscription rate is 654.38+0% and the face value of the fund share is 654.38+0 yuan, then
Subscription fee = 1 ten thousand yuan x 1% = 1 ten thousand yuan.
Net subscription amount = 6,543.8+0,000 yuan-6,543.8+0,000 yuan = 990,000 yuan.
Subscription share = 990,000 yuan/1.00 yuan = 990,000 copies.
Subscription example:
An investor has 6,543,800 yuan to buy an open-end fund. Assuming that the subscription rate is 2% and the net value of the unit fund is 654.38+0.5 yuan, then
Subscription fee = 1 ten thousand yuan x 2% = 2 thousand yuan.
Net subscription amount = 6,543,800 yuan+0,000 yuan-20,000 yuan = 980,000 yuan.
Subscription share = 980,000 yuan/1.50 yuan = 653,333.33 copies.
Redemption example:
An investor wants to redeem 6,543,800 fund units, assuming that the redemption rate is 654.38+0% and the net value of the unit fund is 654.38+0.5 yuan, then
Redemption price = 1.5 yuan x (1-1%) =1.485 yuan.
Redemption amount = 1 ten thousand x 1.485 = 1.485 million yuan.
How to choose an open-end fund
Experts said that in the face of open-end funds, what are the specific? Investors should consider the following points.
(1) Whether the Fund has maintained good performance in the past.
(2) Is the fund management company trustworthy? Whether the fund manager has sufficient professional knowledge and rich investment experience.
(3) Whether the investment objectives of the fund are consistent with your own investment objectives.
For example, everyone's investment goal has a lot to do with age, income, family status and other factors (generally speaking, it is more appropriate to choose a high-risk and high-yield fund when you are young? When you are about to retire, it is more appropriate to choose a fund with low risk and stable income.
(4) Whether the investment period of the fund meets your needs.
Generally speaking? The longer the investment period? The less investors have to worry about short-term fluctuations in fund prices? So you can choose a more active fund variety. If the investor's investment period is short? You should try to consider some low-risk funds.
(5) Risks that investors can bear.
Generally speaking, high-risk investment has high return potential. However, if investors are sensitive to short-term fluctuations in the market, they should consider funds with low investment risks and stable returns. If investors are more enterprising, don't mind the short-term fluctuations of the market and want to earn higher returns, then some funds with higher risks may be more in line with investors' needs.
(6) Whether the fee level of the fund is appropriate.
If investors can make use of the above evaluation points and carefully compare the funds in the market, I believe that investors will be able to choose the most suitable fund from many funds.